Thursday, July 8, 2010

COST Watch

Discount bulk retailer Costco Wholesale Corp. (COST) rose today on increasing volume and a move to bull phase from Person's Proprietary Signal (pps).

The move came on happy reports about retail sales and a bigger than expected decline in the weekly jobless claims.

Happy days? Here again? You betcha! (Or you betcha not -- that is the question.)

COST $55.33

The technical indicators are a mixed bag but most are moving toward a bullish posture.

The three-month price history, however, is one of sad decline, from a peak of $61.62 in April down to yesterday's low of $53.41.

Both yesterday and today saw intra-day rises with volume increasing both days. Wednesday's volume was up 43% from Tuesday's, and today's is up an additional 13% (with 75 minutes left to trade).

The move to an uptrend, the price would neeed to exceed the nearest lower high in the downtrend, $59.18 set on June 15. That is some distance away.

Reversal Levels
  • $59.18, +7.0%
  • $57.20, +33.4%
  • $55.33 <== You are here.
  • $53.41, -3.5%

The Great Reflation: How Investors Can Profit From the New World of Money
OK. The credit bubble burst. Housing, burst. Shockwaves reverberated. Markets collapsed. What lies ahead as we reemerge from the wreckage.

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.
  • psar - Parabolic Stop and Reverse
  • adx - Average Directional Index
  • pps - Person's Proprietary Signal
  • ma20 - 20-day moving average
  • macd - Moving Average Convergence-Divergence
  • sto - Fast Stochastic
About the glance: The colors indicate the state of each signal.
  • trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
  • adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
  • psar, pps, macd: green for bull mode, red for bear
  • sto: green for overbought, red for oversold, yellow for the neutral zone.

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